The Carnegie Foundation Plan 

of Insurance and Annuities 

for College Teachers 



M. ALBERT LINTON 



Published by 

THE PROVIDENT LIFE AND TRUST COMPANY 

OF PHILADELPHIA 

Fourth and Chestnut Streets 

December, 1918 



2261 12.16 

(Rev.) 



NOTE 

THIS pamphlet has been prepared for the use of the 
agents of the Provident Life and Trust Company, and 
of others who are interested in the principles of insur- 
ance protection put forth by the Carnegie Foundation. 
There is lio antagonism on the part of the Company 
to the idea of faculty members availing themselves of the 
benefits ofiFered to them by the Foundation through the 
Teachers* Association. Their right to avail themselves of 
these benefits, and to choose the form of policy in their 
Association which their good judgment shall dictate, is too 
obvious to need demonstration. 

Unfortunately the Handbook of the Association and 
certain publications of the Carnegie Fotmdation contain 
statements that may easily g^ive the impression that the old 
age endowment policy — the policy maturing at some definite 
age, say between the ages of 60 and 70 — is an inherently 
objectionable form of insurance. There are thousands of 
policyholders in this and other companies who hold this 
form of policy, and we feel it our duty, in the light of the 
statements of the Carnegie Foundation, to present as simply 
as possible the principles underlying the old age endow- 
ment policy issued on a participating basis. Our faith in 
this form of policy results from our experience with thou- 
sands of policyholders whose old age endowments have 
matured. 

In furtherance of this thought this pamphlet was shown 
to several well known college professors, with the result 
that we have been asked whether we would be willing to 
send copies to the members of the American Association of 
University Professors. Dr. S. S. Huebner, Professor of 
Insurance and Commerce in the Wharton School of the 
University of Pennsylvania, says: 

"Your pamphlet deals so fairly with many of the vital 
topics under consideration in connection with the Carnegie 
Foimdation Plan of Insurance and Annuities, that I would 
very much like to have it in the possession of every member 
of the Association. I took the liberty of sending a copy of 
your pamphlet to Dean Stone, Chairman of the American 
Association's Committee on Insurance and Pensions. He 
agrees with me that it would be a fine thing to have the 
Association membership become acquainted with the points 
made in your article." 

It is in response to this suggestion that the pamphlet 
is sent you. 



The Carnegie Foundation Plan 

of Insurance and Annuities 

for College Teachers 



M. ALBERT LINTON 

Vice-Presideot, The Provident Life and Trust Company 

of Philadelphia 

Fellow Actuarial Society of America 

Fellow Institute of Acluariet (London) 



Published by 

THE PROVIDENT LIFE AND TRUST COMPANY 

OF PHILADELPHIA 

Fourth and Chestnut Streets 

December. 1918 



2261 12.18 

(Rev.) 



am 

Author 






The Carnegie Foundation Plan of 

Insurance and Annuities for 

College Teachers 



In March 1918, the Teachers' Insurance and Annu- 
ity Association of America was incorporated under 
the insurance law of the State of New York for the 
purpose of furnishing life insurance and annuity 
policies to the college teachers of the United States 
and Canada. The Association is closely allied with 
the Carnegie Foundation for the Advancement of 
Teaching which supplied the capital and surplus of 
$1,000,000. The expenses of the Association will be 
paid from the income on the capital and surplus or, if 
this should be insufficient, then from the funds of the 
Carnegie Foundation. This expense provision has 
been made in the hope that the Association will be 
able to furnish insurance and annuity policies at rates 
lower than the rates of the private companies who, of 
course, have to meet their expenses out of the pre- 
miums paid by their policyholders. 

Several publications of the Carnegie Foundation 
have dealt with the proposed plan of insurance and 
annuities, which, we are told, has been evolved with 
the co-operation of experts in Europe and America, 
and is based upon exhaustive original research. It is, 
therefore, bound to command serious attention, not 
only from college teachers, who are most intimately 



concerned, but also from all who are interested in the 
application of life insurance to the needs of society. 

Two Major Contingencies to Be Met 

The Carnegie Foundation has ably analyzed the two 
major contingencies facing the average man. First, 
the contingency of premature death which may plunge 
his dependent family into privation and suffering, and 
second, the contingency of reaching the end of his 
income-earning career without sufficient means to pro- 
vide adequately for the declining years of himself and 
his family. The experience of The Provident Life 
and Trust Company during the last fifty years thor- 
oughly supports this analysis. It is true in every detail. 
Ever since the Provident commenced business, it has 
been advocating and selling a policy prepared par- 
ticularly to meet these two contingencies. The 
Company is therefore intensely interested in applying 
the results of its own experience to test the proposed 
plan of the Carnegie Foundation. If the Carnegie 
plan is superior, life insurance companies should 
adopt it. 

The Proposed Plan 

The Handbook of the Teachers' Association sets 
forth its ideal plan for meeting the two contingencies. 
To meet the contingency of dependency in old age, it 
recommends an annuity policy providing at the retire- 
ment age, say age 65, a fund sufficient to purchase some 
form of annuity for the remainder of life. Prior to 
the retirement age the annuity policy operates upon 
the simple plan of a savings fund which accumulates 



at interest from the periodical payments made by the 
teacher. To meet the contingency of premature death, 
life insurance is recommended. For teachers not over 
40 years of age a special decreasing insurance policy 
has been devised to accompany the annuity policy. 
The insurance policy provides that the full face value 
shall be paid if death occur prior to age 41. At age 41, 
and each year thereafter, there occurs a reduction in 
the amount of insurance equal to 3 per cent, of the 
original face value. At age 70, thirty reductions have 
occurred and the insurance has been reduced to 10 per 
cent, of the original face value. Thereafter the reduc- 
tion ceases. It is further provided that premium 
payments shall cease at age 65. 

Analysis of the Combination 

For the purpose of analyzing this combination, we 
shall assume as the basis of our computation the 
American Experience Table of Mortality and interest 
at ZYz per cent. This basis provides the smallest net 
life insurance premiums permitted by law. We will 
assume that the policy is taken out at age 30, and that 
the amount of the savings fund that is to be available 
at age 65 for the purchase of the annuity, and the face 
value of the insurance policy before any reduction has 
occurred, are each equal to $10,000. On the basis of 
these assumptions we find that the net annual premium 
for the annuity policy is $145, and for the insurance 
policy $99— a total of $244. 

A teacher therefore who holds these two policies 
involving a net premium of $244 each year, will be 



protected against the two contingencies above dis- 
cussed. If he lives to attain age 65, the savings fund 
will have attained its contemplated amount and the 
annuity will commence. If he does not live to attain 
age 65, his widow receives both the amount of the 
savings fund accumulated to date, and the amount of 
the insurance policy. The following table shows the 
total amount produced by the two policies if death 
occurs at certain specified times : 

If Death occurs Age Total Amount 

at end of: Attained Payable 

1 year 31 .....$10,150 

5 years 35 10,804 

10 years 40 11,759 

20 years 50 11,241 

30 years 60 11,742 

At the end of 35 years, when age 65 has been attained, 
the savings fund matures for the cash sum of $10,000, 
with which the annuity is purchased. The premiums 
cease on the insurance policy which then has been 
reduced to the face value of $2500, payable in event of 
death. The reduction continues at the rate of $300 
each year until at age 70 the face value has been 
reduced to $1000. 

A Hybrid Endowment 

The irregular series of amounts shown in the table 
at once suggests the possibility of simplifying the com- 
bination so that the amounts would remain uniform 



from year to year. This simplification is readily made 
and, moreover, may be embodied without the slightest 
difficulty in one single contract instead of two, as in 
the Carnegie plan. If the proposed simplification 
were made, the same net premium of $244 would 
provide a policy paying $11,240 in the event of death 
at any time prior to age 65, and also the same sum, 
$11,240, if the policyholder survived to age 65. 
Under this simplified plan the insurance would cease 
as soon as the $1 1,240 had been paid at age 65. There 
would seem to be no valid reason for insurance pro- 
tection after the savings fund has attained its contem- 
plated total. 

The simplified combination at which we have 
arrived is nothing more or less than the true endow- 
ment policy. The true endowment policy, although 
embodied in one single contract, is likewise a combina- 
tion of a savings fund and a term insurance element. 
But it possesses the advantage that the continuing 
increase in the savings element is exactly and auto- 
matically balanced by the continuing decrease in the 
insurance element, so that exactly the same amount is 
payable in the event of premature death as would have 
been paid if the policyholder had lived to complete his 
savings fund. Nothing could be simpler than this 
single contract performing its double function. More- 
over, experience has demonstrated that the true endow- 
ment maturing at the close of a man's income-earning 
career is an ideal form of policy with which to provide 
against the two contingencies of life, so ably analyzed 
by the Carnegie Foundation. The result of our 
analysis leads to the conclusion that the Carnegie com- 



bination is simply a hybrid form of endowment policy 
considerably more complicated than the true endow- 
ment. 

Does Carnegie Foundation Understand the 
Endowment Policy? 

In view of this conclusion we are completely at a loss 
to understand why the Carnegie Foundation in writing 
of the endowment policy fails to emphasize that the 
endowment policy is peculiarly adapted to meet the 
two contingencies for which their peculiar, two-policy 
combination was devised. In the Supplement follow- 
ing this article, we reprint the three extended refer- 
ences to the endowment policy appearing in Bulletin 
Number Nine (1916) and the Annual Reports for 
1916 and 1917 published by the Foundation. Through- 
out these references it is evident that the Foundation 
stresses the conception of the endowment policy as an 
''investment" policy. In one sense, of course, the 
endowment is an investment, but it is an investment 
in exactly the sense that the word applies to the Car- 
negie combination. In fact, the combination of the 
$10,000 Carnegie decreasing insurance policy with the 
$10,000 annuity policy involves a net premium of $244, 
against $217 for the regular $10,000 Endowment at 
age 65, although each provides the same sum, $10,000, 
at maturity. In other words, the cost of the larger 
insurance element in the Carnegie combination will 
make the combination, from the investment point of 
view, appear less favorable than the Endowment at 65. 
Yet in spite of this fact we read in the recently pub- 
lished Handbook of the Teachers' Association* that 

*Pp. 12, 13. 

8 



endowment insurance "is the most expensive form of 
insurance as it provides both insurance protection and 
investment"; and that "the Association does not regard 
the endowment form of insurance as adapted to the 
circumstances of teachers in general. To meet excep- 
tional cases it offers endowment insurance maturing at 
age sixty- five." (The italics are our own.) 

An Example of Actual Cost 

At this point it will be instructive to investigate the 
cost of one of these "most expensive forms of insur- 
ance" which recently* matured in the Provident 
which, of course, was not subsidized as to its manage- 
ment expenses, as is the Teachers' Association. The 
policy which matured was an Endowment at 65, taken 
originally at age 30. The actual cost upon a $10,000 
basis is shown by the following figures: 

Total premiums paid to the Company. . . .$9,055 
Total surplus returned by the Company. . 2,575 



Difference=total net cost during 35 years.. $6,480 
Average net cost per year $185 

Comparing this average net cost of $185 for a Provi- 
dent $10,000 Endowment at 65, with the cost of the 
hybrid combination, how can the endowment be con- 
demned as expensive? 

It will be noted that the low net cost shown in the 
foregoing example was attained as a result of the dis- 
tribution of surplus. It shows clearly that the ultimate 
cost to the policyholder does not depend primarily 
upon the gross premium charged, but upon the amount 

•September, 1918. 



of surplus realized. Under a participating contract, 
the actual cost of the insurance depends upon the 
experience of the company and not upon the assump- 
tions underlying the premium calculations. 

Why Non-Participating Policies? 

Now a word or two about the policies of insurance 
that the Teachers' Insurance and Annuity Association 
plan to offer. The Association will issue all the usual 
forms of insurance and annuity policies, although the 
decreasing insurance policy combined with the annu- 
ity policy represents, in the eyes of the Carnegie 
Foundation, the ideal scheme of complete protection 
for the teacher not over 40 years of age. The Associa- 
tion will conform to the insurance laws of the State of 
New York and will issue insurance policies at net 
legal rates, that is, at rates not lower than those com- 
puted upon the net American 3^ per cent, basis. We 
are told that the policies will be non-participating as 
"it is evident that distributions on a participating 
policy issued at net rates would be so small during the 
first years of its existence that if distributed in annual 
dividends they would not in some cases pay the cost 
of postage." * In view of the fact that no expense 
charge will be borne by the policyholders this is a 
remarkable statement. And we shall see why it is 
remarkable if we compute the surplus that would be 
realized should the actual rate earned be 4^ per cent, 
and the actual mortality rate experienced be 70 per 
cent, of that shown by the American Table. (For the 
five years 1913 to 1917 inclusive, the average rate of 
forty-five private companies was 66 per cent.) The 

•Twelfth Annual Report (1917), p. 46. 

10 



following figures relate to $10,000 of insurance taken 
at age 30. 

Net Yearly Average Yearly- 

Kind of Policy Premium: First Year Surplus for 

American 3]^% Surplus 35 Years 

Endowment at 65 $217.10 $27.10 $61.00 

Twenty Payment Life.. 247.10 27.30 62.80 

Ordinary Life 171.90 26.80 56.30 

Term to 65 120.90 26.30 50.90 

Since none of this surplus will be needed for expenses, 
it will all be available either for building up a con- 
tingent fund or for distribution. Assuming that one- 
half is withheld for contingencies, the remaining half 
is by no means insignificant. If the policyholder is to 
receive his insurance at actual cost the surplus must 
eventually be distributed. The surplus under the 
policies of the Teachers' Association will undoubtedly 
be large, and we see no valid reason why the contracts 
should not provide for participation unless it is de- 
sired to withhold the surplus from the control of the 
teachers. * 

The Published Rates of the Association 

Thus far our analysis of the Carnegie Foundation 
combination has involved net premiums computed upon 
the American 3^ per cent, basis. The actual rates 
published in the Handbook of the Teachers' Associa- 
tion indicate that the insurance premiums have been 
computed upon this basis, but that the savings fund 
annuity premiums, as permitted by the law relating 
to annuity calculations, have been computed upon a 

♦The Association will probably not be able to confine certain of its 
expenses within the assumed mortality gains specified in the New York law, 
so that the premium rates, if made participating, should be somewhat 
increased to meet the technical requirements of the law. The effect upon 
the net cost, however, would be negligible since the distributable surplus 
would likewise be increased. 

11 



4 per cent, basis. Now the higher the interest assump- 
tion, the smaller the resulting premium, since the more 
interest received, the less money the policyholder will 
be called upon to pay. Therefore, the combination of 
the savings fund premium computed upon a 4 per cent, 
basis, with the decreasing insurance premium com- 
puted upon a 3^ per cent, basis, yields a total that is 
smaller than the total of the two net 3^ per cent, pre- 
miums which we employed to obtain a true comparison 
with the regular Endowment at 65. We found (page 5) 
that $244 was the total net yearly premium on a 2y^ per 
cent, basis for the Carnegie combination of a $10,000 
annuity policy with the $10,000 decreasing insurance 
policy. The 3^ per cent, net premium for the true 
$10,000 Endowment at 65 is $217, or $27 less. When 
we use the published rates of the Teachers' Association, 
where the annuity premium is computed upon a 4 per 
cent, basis, this difference is reduced to about $10. * 

For example, from page 99 of the Teachers' Associa- 
tion Handbook, we learn that $8.58 is the monthly 
premium at age 30 for the Association's $10,000 de- 
creasing insurance policy. From Table II on page 1 1 1 
we compute that $11.08 is the Association's monthly 
savings fund premium to accumulate $10,000 in 35 
years. The two together, therefore, amount to $19.66. 
From page 109, we learn that the monthly prem- 
ium at age 30 for the Association's $10,000 Endowment 
at 65 is $18.80. On the yearly basis therefore, the pub- 
lished rates appear to indicate that the combination 
costs but about $10 more than the endowment. 

* In the interest of simplicity and to emphasize principles rather than 
minor details, no reference is made in this comparison to any disability 
element that may be contained in the Association's premiums. 

12 



From what has been said upon the subject of partici- 
pation, it is evident that the reduction in the difference 
between the two premiums would be nullified in the 
long run if the teachers were granted the right to re- 
ceive the surplus realized upon their policies. For 
obviously the surplus realized from interest earnings 
would be greater under a 3^/^ per cent, contract than 
under a 4 per cent, contract. Under a participating 
policy, as stated above, the ultimate actual cost depends 
upon experience, and not upon the assumptions under- 
lying the premium calculation. 

Joining the Issue 

The Teachers' Association is a fine conception 
affording college teachers an assistance which does not 
savor of charity. The general principles laid down for 
its guidance are sound. Among the private companies 
there will be no feeling of rivalry with the new Asso- 
ciation which they welcome to the insurance brother- 
hood. It is in no unfriendly spirit that regret is 
expressed that the Carnegie Foundation and the 
Teachers' Association have apparently failed to see 
how, for the average man, the well-tried endowment 
form completely carries out, in the simplest and most 
effective way their own basic principles. Through 
their failure to see this clearly they put themselves in 
the false position of criticising the endowment form 
as expensive, and then of recommending a combination 
which, compared upon a participating basis, requires a 
larger outlay of money, but provides the same sum at 
retirement. In presenting our analysis of the combina- 
tion, we are fortified by the Provident's experience with 
thousands of satisfied policyholders who have lived to 

13 



receive payment under their matured old age endow- 
ments. And according to our mortality experience, 
about sixty-eight out of every hundred policyholders 
who insure at age 30 live to age 65. 

The idea suggests itself that the real reasons for 
recommending the somewhat cumbersome combina- 
tion of two policies, one savings and one protection, are 
not brought forward. One reason may be that the 
Carnegie Foundation believes that the separation into 
two policies will render it easier for the college to 
assist financially in providing the annuity at retire- 
ment. Another may be that it believes it wise to pro- 
vide an annuity policy against which the teacher will 
not have the right to borrow. If these be the real 
reasons, the objections to the well-tried, satisfactory 
endowment plan are wholly extrinsic; and it is a matter 
of regret that the endowment form of insurance should 
have been presented as inherently objectionable. 

We, of course, have nothing to do with the form of 
Teachers' Association policy which any teacher may 
choose. We have to do only with our own policy- 
holders, present or prospective, who may not have 
noticed the inconsistency in the publications of the Car- 
negie Foundation and in the Handbook, between the 
criticism of endowment insurance as expensive, and the 
recommendation of a still more expensive form con- 
taining the identical endowment element; or between 
the statement in the 1917 Annual Report that endow- 
ment insurance is an "investment rather than a means 
of protection against risk," and the warm recommenda- 
tion of a savings fund annuity policy as a means of pro- 
tection against one of the major risks of life — the risk 
of dependency in old age. 

14 



English Retirement System Based Upon 
Endowment Policy 

It is interesting to note that the English Universities 
in their Federated Superannuation Plan employ the 
old age endowment as their standard for teachers with 
dependents, and the annuity policy alone for teachers 
without dependents. In our judgment these two poli- 
cies, with perhaps the addition of short term insurance, 
form the basis of the ideal retirement system. Further- 
more, a system of this kind possesses great flexibility. 
The annuity and savings fund accumulation options, 
which will be incorporated in the savings fund annuity 
policy of the Teachers' Association, may be incorpo- 
rated in an old age endowment policy. 

If it is not desirable that the teacher withdraw from 
teaching when the endowment matures, say at age 65, 
provision can be made for continuing the premium pay- 
ments on a pure savings fund basis, so that an increased 
accumulation wuU be available for the annuity when 
retirement does take place. If retirement should occur 
prior to maturity of the endowment the cash value of 
the endowment is available to purchase the annuity. 

If the college desires to render financial assistance 
only in building up the fund which will provide the 
retirement pension, it may do so under the endowment 
policy, since the endowment premium involves a 
definite savings fund element that may always be 
calculated. 

It may be desired to limit the teacher's power to 
borrow against the accumulation standing to his credit. 
Such borrowing, if extensively indulged in, would 

15 



largely defeat the purpose for which the retirement 
plan was instituted. One way of meeting this problem 
when the endowment policy is adopted as the standard, 
is to have the policy issued in favor of a Trustee or 
Trustees appointed for the purpose. The Trustee in 
return would execute an agreement with the teacher 
providing that if the policy proceeds should become 
payable, they would be applied by the Trustee in a 
manner specified by the teacher. This is the method 
adopted by a Retirement Fund recently established for 
teachers in schools under the care of Philadelphia 
Yearly Meeting (Fourth and Arch Streets) of the 
Society of Friends. 

Conclusion 

The Provident Life and Trust Company has a pecu- 
liar interest in the Carnegie plan for the reason that 
the Company has had an extensive experience with 
endowment insurance. Prior to the first of December, 
1918, it had paid, since the organization of the Com- 
pany in 1865, $51,700,000 in matured endowments, as 
against $52,600,000 for death claims. Last year 66 per 
cent, of its new business was on the endowment plan, 
written to mature, on the average, at age 63. During 
the same year the other companies operating in the 
State of New York wrote but 17^ per cent, of their 
new business on the endowment plan. We have seen 
the old age endowment policy work out so satisfactorily 
in thousands of instances that we are more and more 
convinced that it is the ideal form of policy to provide 
protection against the two contingencies of premature 
death and dependency in old age. 

16 



SUPPLEMENT 

Views of Carnegie Foundation Upon Endow- 
ment Insurance 

The indices of Bulletin Number Nine, and the 1916 and 1917 
Annual Reports, all published by the Carnegie Foundation, contain 
five references to Endowment Insurance or Endowment Policies. 
Of these references the three which present the attitude of the 
Foundation toward endowment insurance are reprinted below. In 
the foregoing article we have commented upon the conclusions that 
we draw from these quotations. 

Bulletin Number Nine, Page 27 

"For the present misconception of the function of insurance 
the great insurance companies are in part responsible. They 
have educated the public away from the primary use of insur- 
ance. The process has been a natural one. Endowment and 
tontine policies mean large payments, great accumulations in 
the hands of the companies for investment, and greatly increased 
commissions for the agents. The enterprising life insurance 
agent naturally sells an ordinary life or a term policy only 
after he fails to persuade the purchaser of insurance to take 
one of the more expensive forms. For teachers, as for all other 
men upon fixed salaries, investment policies are essentially against 
their interest. They are justified upon one ground only, and that 
is the ground usually assigned by teachers themselves. Only by 
creating a definitely recurring obligation does the typical teacher 
find it possible to save money at all. He realizes, when his 
endowment policy matures at the end of twenty or thirty }'ears, 
that as an investment it represents a poor return, but he consoles 
himself with the reflection that but for the insurance policy he 
would most probably have saved no money at all." 

Eleventh Annual Report (1916), Page 46 

"Only one complaint of a definite sort has appeared in 
reference to the statements concerning insurance made in the 
Bulletin, This came from the actuary of a company whose 

17 



principal business is the selling of endowment policies. It 
referred to the Bulletin as an attack upon endowment insurance. 

"It requires but a glance at the Bulletin itself to show the 
mistake of this view. In no respect was endowment insurance 
as such attacked. It was shown, however, that endowment 
insurance was not that form of insurance adapted to the needs 
of a man upon modest salary, who has a pension guaranteed 
to him if he lives to a certain age. To a man so circum- 
stanced insurance as an investment offers meagre returns. Two 
reasons influence teachers in the purchase of such policies, out- 
side the solicitations of the agent. The first is that by binding 
himself to a fixed obligation of definite amount each year, the 
teacher forces himself to save money. The second is that an 
endowment policy is a convenient security upon which to bor- 
row, a circumstance which too often results in defeating the 
purpose of insurance. The endowment policy does not meet 
the need of legitimate insurance for men circumstanced as are 
teachers. This is no criticism upon companies which sell this 
form of insurance, but it illustrates the fact that the selling 
point of view in life insurance does not always conform to the 
interest of the buyer. 

"The criticism, so far as it undertook to compare the results of 
term insurance as here offered with those obtained in the last 
thirty years from endowment policies, was entirely misleading." 

Twelfth Annual Report (1917), Pages 51, 52 

"Endowment policies represent a form of insurance in which 
the purpose of protection is in large measure subordinated to 
that of investment. Endowment policies provide for the pay- 
ment of the face of the policy, not only upon the death of the 
insured, but also at the end of the stated term, if the insured 
be still living.* This form of policy is extremely popular among 
teachers as well as among other purchasers of insurance. The 
notion that the insured is providing something not only for 
the protection of his dependents, but also something for his own 

♦These are exactly the reasons why the old age endowment fully 
protects against life's two major contingencies — premature death and 
dependency in old age. 

18 



protection and profit, is one that appeals to a well-nigh universal 
human trait. It departs, however, from pure insurance, in two 
respects. The motive is no longer simply the protection of 
dependents. Also, such insurance is an investment rather than 
a means of protection against risk.* 

"The argument generally advanced in recommending this 
form of insurance is that it constitutes a safe method for saving 
and one open to the individual of small and large means alike. 
A large number of teachers invest in endowment policies for the 
same reason that other men of limited income make such invest- 
ments, influenced partly by the arguments of the life insurance 
agent, who generally prefers to sell an endowment policy, and 
partly by the very natural feeling that here is a reservoir to 
which he may go in case of any pressing need." 

*Why not a protection against the risk of dependency in old age, the 
very risk against which the Foundation would provide by means of a 
savings fund annuity policy? 



19 



LIBRARY OF CONGRESS 



019 758 325 3 



